1 All Of The Following Are Advantages Of Decentralization Except A To Improve Custom 2434356

1) All of the following are advantages ofdecentralization except:

A. to improve customer relations.

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B. to encourage use of expert knowledge.

C. to increase employee motivation.

D. to allow goal congruence to be achieved more easily.

2) All of the following are responsibility centersexcept:

A. profit centers.

B. investment centers.

C. customer centers.

D. cost centers.

3) The differences between actual and budgeted figuresare known as:

A. fluctuations.

B. variances.

C. overages.

D. underages.

4) Which of the following is a performance measurecommonly used to assess the performance of investmentcenters?

A. Return on investment

B. Profit margin

C. Current ratio

D. Gross income

5) Residual income is calculated as:

A. revenues less expenses.

B. contribution margin less minimum acceptable income.

C. operating income less minimum acceptable income.

D. sales less variable costs.

6) Which of the following is NOT a strategy fordetermining the transfer price of a product?

A. Related party discounted price

B. Market price

C. Cost or cost-plus a markup

D. Negotiated price

7) Employee capabilities, information systemcapabilities, and the company’s “climate for action” are importantfactors of the:

A. employee perspective.

B. customer perspective.

C. internal business perspective.

D. learning and growth perspective.

8) Assume Cucumber Company expects each division to earnan 8% target rate of return. Assume the Company’s Pickle Divisionhad the following results:

Sales                                       $24,500,000

Operatingincome                        1,250,000

Totalassets                               15,500,000

The Division’s ROI is:

A. 8.1%.

B. 15.8%.

C. 5.1%.

D. 8.0%.

9) Assume Ametrine Company expects each division to earnan 8% target rate of return. Assume the Company’s Division A hadthe following results:

Sales                            $24,500,000

Operatingincome             1,250,000

Totalassets                     15,500,000

The Division’s ROI is:

A. −$10,000.

B. $10,000.

C. −$710,000.

D. $710,000.

10) Which of the following are examples ofKPIs?

A. Average customer satisfaction ratings

B. Number of repeat customers

C. Sales revenue growth

D. All of the above are examples of KPIs